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Tolling and Congestion Pricing

Tolling and Congestion Pricing. Patrick DeCorla-Souza Office of Innovative Program Delivery Federal Highway Administration Presentation to Transportation Advisory Group The Council of State Governments December 4, 2008. Overview. Rationale for congestion pricing

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Tolling and Congestion Pricing

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  1. Tolling and Congestion Pricing Patrick DeCorla-Souza Office of Innovative Program Delivery Federal Highway Administration Presentation to Transportation Advisory Group The Council of State Governments December 4, 2008

  2. Overview • Rationale for congestion pricing • Congestion pricing examples worldwide • Recent developments

  3. Ways to Reduce Congestion • Increase capacity: • Physical capacity • Management and operations • Reduce demand • Provide attractive “substitutes” for driving during rush hours • Congestion pricing

  4. Why Congestion Pricing? • Manages demand: Balances demand with supply • Generates revenue • Signals where additional capacity may be economically justified

  5. How Congestion Pricing Works • Variable toll makes the cost borne by user reflect the actual social cost of driving • Willingness to pay – people will choose to drive as long as the benefit they get is equal to the cost they face • Others will shift to using substitutes

  6. Substitutes • Alternative modes with traveler information • Transit • Ridesharing • Alternative destinations • Telecommuting • Alternative times • Flextime, staggered work hours

  7. Overview • Rationale for congestion pricing • Congestion pricing examples worldwide • US DOT’s Congestion Initiative

  8. Types of Congestion Pricing • Managed Lanes: • Separate lanes on freeways managed with variable tolls • Managed Highways: • All lanes on highway managed with variable tolls • Area or Cordon Pricing: • User charges to enter or drive in an area

  9. Managed Lanes SR 91, Orange County, CA - • Four new lanes in median, 10 miles • Tolls are $1.20 to $10.00

  10. Managed Lanes

  11. Maximum Toll Rates: San Diego Evening Period Northbound Maximum Toll Schedule for I-15 HOT Lanes, San Diego, California

  12. Managed Highways • Variable pricing on the State Route 520 floating bridge. • Tolls on the existing bridge • Will help pay for the new bridge.

  13. Managed Highways

  14. Toll rates 45 kph 65 kph Decrease Increase Tolls Rates on Singapore Expressways Charges vary from 50 cents to $2.50

  15. Cordon or Area Pricing

  16. Stockholm Toll Rates

  17. Overview • Rationale for congestion pricing • Congestion pricing examples worldwide • Recent developments

  18. USDOT Urban Partnership Program • Key: • Tollsthat vary with level of demand • Support strategies: • Transit • Telecommuting and flextime • Technology: • Multimodal traveler information • Active traffic management and operations

  19. Urban Partners Seattle Minneapolis -St. Paul Chicago SanFrancisco Los Angeles Miami

  20. HOT Network Study: Washington DC • Annual revenue: • $1.5 to $2.8 billion annually • Capital cost recovery: • 43% to 48% for new lanes • 58% to 110% with pricing of existing general purpose lanes

  21. “Traffic Choices” Study:Seattle, WA • Present value of revenues = $87 B

  22. Area Pricing in New York City • Annual net revenue: • $500 million • Dedicated to transit

  23. Public Opinion Surveys • Managed Lanes: • 60-70% approval from all income groups • Managed Highways: • Seattle: 64-74% approval for new tolls on currently free SR 520 bridge which needs rehabilitation • Area Pricing: • New York City: 60% approval (67% approval in City Council vote)

  24. Summary • Congestion pricinghas many benefits • Operates successfully worldwide • Bold and innovative projects are underway in several U.S. cities • Studies suggest promise in addressing funding shortfalls • Public opinion can be positive

  25. For more information contact: Patrick DeCorla-Souza Office of Innovative Program Delivery Federal Highway Administration 202-366-4076 Patrick.decorla-souza@dot.gov www.FightGridlockNow.gov

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